Background of the Study
Tax revenue is a critical source of government funding for public services and infrastructure development. In Nigeria, the allocation of tax revenue toward rural development is essential for improving living standards, reducing poverty, and fostering economic growth in underserved regions (Akinmoladun & Oladipo, 2024). Ogun State, with its rich agricultural heritage and growing industrial sector, provides a unique context for examining how tax revenue is utilized for rural development.
Historically, rural areas in Ogun State have faced challenges such as inadequate infrastructure, poor access to healthcare and education, and limited employment opportunities. Despite these challenges, Ogun State has made efforts to mobilize tax revenue to fund various rural development initiatives, including road construction, agricultural development, and healthcare services (Ibrahim & Oni, 2023). However, the impact of tax revenue on the rural development agenda has been inconsistent, with concerns about misallocation and inefficiency in the use of funds.
This study aims to evaluate how effectively Ogun State has used tax revenue for rural development projects, focusing on the outcomes, challenges, and areas for improvement.
Statement of the Problem
Despite the substantial tax revenue generated in Ogun State, rural development remains an ongoing challenge due to inefficient allocation of funds, corruption, and lack of strategic planning. Although tax revenue has been directed toward some development projects, its impact on improving the lives of rural residents is often unclear (Adesanya & Gbenga, 2023).
This study seeks to investigate the role of tax revenue in financing rural development initiatives in Ogun State, identifying factors that influence the effectiveness of these funds.
Objectives of the Study
Research Questions
Research Hypotheses
Scope and Limitations of the Study
The study focuses on Ogun State’s use of tax revenue for rural development projects from 2023 to 2025. Limitations include potential data availability issues regarding specific tax-funded projects and regional disparities within the state.
Definitions of Terms
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